Carney and Osborne are having a chinwag over the leverage ratios that are due to come in under Basel III by 2018. The UK wants to bring them in as soon as possible and set them higher than the minimum. Osborne says that the FPC needs to asses what powers it needs and to finalise a framework over the next 12-18 months. He also wants the FPC to set the ratio higher than the 3% Basel level in some cases.

The new leverage ratio is to be applied on total bank assets rather than on just risk weighted assets.

Carney & Co are also up before a treasury select committee at 10 am.